UK consumer confidence rose in June, but Middle East tensions and energy costs cloud the outlook

UK June Consumer Confidence Reaches New High of the Year

According to data released by market research company GfK on What does foreign exchange flow dealer do? What are the foreign exchange traffic merchants? What is the relationship between foreign exchange traffic merchants and platforms? What is the relationship between foreign exchange traffic merchants and banks? Foreign exchange distributors What is a foreign exchange distributor? Is it true that foreign exchange loopholes can be arbitraged 3 to 5 times? Details of the foreign exchange loophole arbitrage scam Foreign exchange forum Foreign exchange trading Foreign exchange trading income Which platform is used for foreign exchange trading? Foreign exchange trading automatic trading software Free foreign exchange trading platform Foreign exchange simulation app Foreign exchange simulation account Which foreign exchange dealer is good? Which foreign exchange platform is good? Which foreign exchange platform is easy to use? Which foreign exchange platform is the most reliable? Top ten foreign exchange trading platforms Foreign exchange rankings Foreign exchange rates Foreign exchange rates Foreign exchange rates today What are the signs of foreign exchange running away? Foreign exchange training Foreign exchange training scam Foreign exchange scam has been making normal profits for 5 years Foreign exchange scam routine process Why does the foreign exchange scam return money every month? Foreign exchange scam has not collapsed for five years How long does it usually take for a foreign exchange scam to collapse? Foreign exchange bills Foreign exchange platform Foreign exchange platform 5 0 topFriday, the UK consumer confidence index rose to -18 in June, an improvement from May's -20, reaching the highest level since 2025. This data reflects the increased optimism of the British public about the economic outlook, especially as inflation gradually eases and interest rate policies stabilize.

However, GfK pointed out that the current index still falls below the long-term average of -11 and has not returned to the normal range seen before the pandemic, indicating that the recovery in confidence remains fragile.

Middle East Tensions Raise Inflation Expectations

Despite the improvement in confidence, ongoing geopolitical conflicts in the Middle East cast a shadow over the UK's economic outlook. Since the end of May, Brent crude oil prices have risen by about 20%. UK consumers may face renewed pressure from rising fuel prices in the coming weeks.

The Bank of England also stated this Thursday that it is closely monitoring the potential impact of the situation between Israel and Iran on inflation. As energy is a significant component of inflation, any geopolitical risks could trigger a chain reaction, particularly in the UK, where energy prices are already high.

Uncertainty Remains in Consumer Spending Outlook

Neil Bellamy, GfK's Head of Consumer Insights, noted in a statement, "With the escalation of conflicts in the Middle East, gasoline prices will further increase, and uncertainties related to tariffs remain." He emphasized that these factors could suppress UK consumers' purchasing power in the short term.

The report also showed that although the outlook on the national economy has improved, the confidence index measuring personal financial situation remained unchanged in June. This means that while people are optimistic about the macroeconomy, they remain cautious about their financial abilities.

Caution

Market analysts pointed out that although British consumer sentiment has improved, it still faces challenges from energy price fluctuations, inflation uncertainty, and global geopolitical tensions. In the coming months, if oil prices continue to rise, it could again affect consumer spending, thereby dragging down the momentum of overall economic recovery.

In addition, how the Bank of England balances inflation and interest rate adjustments will also become a key factor in affecting the continued recovery of consumer confidence.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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